How to Compensate for a Total Loss Vehicle?
1 Answers
If the insured amount is higher than the actual value at the time of the incident for a totally damaged insurance vehicle, compensation will be calculated based on the actual value at the time of the incident. That is, compensation = (actual value - residual value) × accident liability ratio × (1 - deductible rate). If the insured amount is equal to or lower than the actual value at the time of the incident for a totally damaged insurance vehicle, compensation will be calculated based on the insured amount. That is, compensation = (insured amount - residual value) × accident liability ratio × (1 - deductible rate). Total loss insurance is a type of insurance that recognizes compensation only in cases where the cargo is completely lost or deemed a total loss.